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TOKYO, April 3 (Reuters) – Key Tokyo rubber futures closed above 160 yen on Friday, extending their gains and briefly rising more than 4 percent, bolstered by a weaker yen and stronger crude prices.
* The key Tokyo Commodity Exchange rubber contract for September delivery <0#JRU:> finished at 163.8 yen per kg, after earlier rising 4.5 percent or 7.1 yen to an intraday high of 165.2 yen.
* It was the first time since Nov. 19 for the benchmark to rise above 160 yen.
* The lead contract has risen about 7 percent this week.
* Some traders had doubts about how high rubber would rally, however, as it was drawing its strength from external factors.
* “Technically it could climb to a little above 180 yen, but fundamentals don’t support that sort of rise,” one Tokyo-based trader said.
* He said the economy had to show solid growth, and not just bottom out, for rubber demand to recover.
* World leaders at the G20 meeting in London set out a $1.1 trillion package to help revive the global economy on Thursday. [ID:nL270941]
* The dollar rose above the 100 yen threshold for the first time in five months on Friday. [USD/]
* U.S. crude futures rose to around $53 a barrel on Friday, regaining ground from an earlier dip and extending the previous session’s gains when they rose nearly 9 percent on renewed hopes after the G20 summit. [O/R]
* Japan’s Nikkei stock average rose 0.3 percent on Friday, hitting a three-month closing high on increasing optimism about the U.S. economy. [.T]
* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 0.3 percent in the week to Thursday, it said on Friday. [ID:nBJD000653]
* A leading government economist told Reuters that it was still too early to say the Chinese economy has touched bottom, but the government is also in no urgent need to launch any new fiscal stimulus policies. [ID:nPEK353764]
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (May) $1.56/kg +$0.01
Thai RSS3 (Jun) $1.56/kg +$0.01
Thai STR20 (May) $1.54/kg +$0.01
Thai STR20 (Jun) $1.54/kg +$0.01
Malaysia SMR20 (May) $1.54/kg +$0.01
Malaysia SMR20 (Jun) $1.54/kg +$0.01
Indonesia SIR20 (May) $0.65/lb +$0.02
Indonesia SIR20 (Jun) $0.65/lb +$0.02
Thai USS3 50.0 baht/kg +0.5 baht
Thai 60-percent latex (drums, May) $1,300/tonne unchanged
Thai 60-percent latex (bulk, May) $1,200/tonne unchanged
Source: Reuters